Which children are at risk of poverty?

In the previous blog we described why child poverty has increased over the last decade. Changes in the labour market, childcare costs and social security system have been some of the drivers for increased child poverty during the last decade, making child poverty one of the most significant challenges of the new government. To address a problem, first we need to understand it, and a large part of this is to make ourselves fully aware of who is at risk, so the government can protect those most in need. 

This blog will explore the characteristics of children in poverty, while identifying which children are at higher risk of poverty. Looking at indicators such as geography, family structure, ethnicity, and disability we will provide a more comprehensive view of the available data. 

(for how child poverty is measured in the UK please read here) 

Geography 

Where we live is one of the main factors of poverty and inequality. Different economic and social opportunities among the areas in the UK, have created inequalities between areas, with lower living standards and health and wellbeing outcomes for those living in the more disadvantaged areas. 

Child poverty isn’t an exemption; children that live in Local Authorities within the East Midlands, North East and North West of England are more likely to grow up in poverty, compared with those children that live in South and East of England. 

Pendle was the local authority in England with the highest proportion of children aged under 16 in low-income families (43%), while Richmond upon Thames had the lowest proportion of children aged under 16 in low income families across England, with a rate of 5%. 

The higher levels of child poverty in the areas in the North of England is probably a consequence of the lack of investment in the areas and lack of opportunities for people living there. The struggle of finding good quality jobs has a consequence for people in the North of England struggling to provide for their families. While in the South of England, where there is a plethora of opportunities and investment over the last few decades, we do still have clusters of areas with low child poverty. 

Major urban areas such as Birmingham, Leicester, Nottingham, Manchester, and City of London were in the top 20 Local Authorities with the highest proportion of children living in poverty (40.8%, 40.6%, 40.0%, 39.4% and 39.4% respectively). But we have to bear in mind that within urban areas child poverty rates may differ. Let’s take for example London, we can notice that within London we have boroughs with the lowest child poverty rates in the UK (Richmond upon Thames) but at the same time areas with the highest child poverty in the UK such as the City of London and Tower Hamlets. The available data do not consider housing costs, which are much higher in London and are a contributor to higher levels of child poverty. 

According to the Centre for Cities, child poverty is an issue of urban stagnation. As mentioned in the previous blog, during the last decade we had an increased number of jobs, mainly created in urban areas, however the higher number of jobs has not been translated to higher income. As a consequence, more people move into cities to find a job, but that job will not allow them to live out of poverty, creating clusters of poverty in cities. 

Family structure

Where children live is not the only risk factor for poverty, the structure of the family also plays one of the most significant roles in child poverty. Children that live with a single parent face a higher risk of poverty compared with those children who live with both parents or in cohabiting households. In the financial year ending 2023, 33% of the children living in single parent households lived in poverty, while only 19% of children living with married or civil partner couples were living in poverty. When we consider housing costs, almost half of the children living in single parent households (44%) end up living in poverty, while the increase in the proportion of children living in poverty within married or cohabitating couples is less dramatic (25%).

The main reason is that single parent households have lower income compared to couples, which in combination with high housing and childcare costs put the household in a greater risk of poverty. Children living with lone parents that are not working or working only part time are also in greater risk of poverty. 

The number of children in a family is another factor that contributes to child poverty. 37% of children living in families with 3 or more children were living in poverty, which compares with 15% of children living in a family with only one child and 16% with children living in a family with 2 children. According to Cambridge University, ”Social security changes are identified as central: these have affected larger families most as they have greater need for support, due to both lower work intensity and higher household needs.”

Ethnicity 

Perhaps not surprisingly, given the UK’s socio-economic context, children from an ethnic minority background are facing higher risks of poverty compared to White children. In particular, Bangladeshi and Pakistani children are at higher risk of poverty. One reason is that Bangladeshi and Pakistani families tend to be larger and have more children; at the same time women from a Bangladeshi and Pakistani ethnic group are more likely to be out of work compared with other ethnic groups. This is because they are more likely to take care of the family and face challenges entering in the labour market either because of cultural reasons or due to discrimination. 

However, not every ethnic minority group is at a higher risk of poverty compared with the White ethnic group. Indian children have the same likelihood to be in poverty compared with the White children (18%). Indian families are more likely to be higher up in the income distribution and wealth distribution compared with other Asian ethnic minority groups.  

Where children live, the structure of their family and their ethnicity are some of the main factors that affect their likelihood to live in poverty or not. The complexity of these factors reveals that reducing child poverty in the UK is not an easy task or something that could be solved with a single policy. A combination of policy packages that supports good quality of work, support for childcare but also structural changes in the economy to support underfunded areas will be needed to fix the increased child poverty situation that has been created over the last 10 years.